Buy, hold, & fix & flip. Increase profit in all steps

[Alex F chang]

Investment Info:

Single-family residence other investment in Casa Grande.

Purchase price: $120,000
Cash invested: $30,000
Sale price: $260,000

Selling price was $180k at the time when we decided to liquidate this deal and could most likely only attract cash offers (maybe conventional buyers but definitely not FHA borrowers due to condition).
Studied our options and looked at comparable prices and found out we could sell it for $240k after some remodel. I then figured out the scope of work needed and the cost of it ($~30k) and started vetting contractors.
This was a no-brainer choice since it would net us an additional $30k in gross profit, but beyond the tangible results, this would also change our position favorably since we are now open to more buyers and have a stronger hand when it comes to selling.

Vetted contractors for remodeling bids as a result of advising the project to increase resale value by 33%. In addition, reduced remodel cost by 33% through bargaining ($30k to $20k), and increased another 8% on top of comparable sales price through strategic sales implementation (Asking price of $240k and got us an offer for $260k - FHA buyer). Coordinated the entire project to finish.

Originally, I wanted to remodel and cash out refi this deal (we would of gotten all our initial capital out of it and owned a 20% equity home that was cash flowing), but after much conversation with the partner, we have decided to sell it instead since it wasn't in our "backyard".

I co-owned this deal with 1 other passive investor (I was the active partner)

What made you interested in investing in this type of deal?

Bought this house at a $10k bargain at the time and intentions were to buy & hold

How did you find this deal and how did you negotiate it?

MLS and reached out to agent

How did you finance this deal?

Conventional loan

How did you add value to the deal?

Remodel

What was the outcome?

Increase resale value by 33% (from $180k to $240k). In addition, reduced remodel cost by 33% through bargaining ($30k to $20k), and increased another 8% on top of comparable sales price through strategic sales implementation (Asking price of $240k and got us an offer for $260k - FHA buyer)

Lessons learned? Challenges?

Very happy with this deal.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

I was the real estate agent and active partner in this deal